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The Social Influence Consulting Group Blog December 8, 2013

The Art of Exclusivity

Source Credit: This week Drive.com.au ran an article written by Sam Hall titled “Latest Prancing Horse brings prodigious performance and added exclusivity”.  While not reproducing the entire article here I have used some of Hall’s text and value added to it from a Science of Influence perspective to look at Ferrari;s Art of Exclusivity.

Exclusivity laferrari

Ferrari are already an exclusive luxury brand due to the price they are able to command for their prancing horse but they have decided to use Scarcity and take exclusivity to a whole new level.

Ferrari have announced that from now on they are only producing 7000 vehicles a year.   Ferrari Australasia president Herbert Appleroth said, “It does mean that customers will have to wait a little bit longer and that some customers may miss out.”

“The idea is that when some customers go to sell these collectable cars… they’ll get a fantastic return. Ferrari is one of the two best returns in asset class in the world – number one is Ferrari and number two is Chinese art.

“In the past five years, Ferrari has outperformed anything else. Over time, modern Ferraris become classics, so you would expect solid value from this car in the future.”

But Ferrari have not stopped there.  The newly released 458 Speciale showcar was whisked into Australia for barely 48 hours to star at this week’s unveiling, en route to similar launches in Indonesia and Singapore.  Ferrari has already received over 120 orders for the prodigious Speciale when it lands in Australia mid-2014, but Appleroth admitted less than half of prospective buyers will be successful in their applications.

“That’s the art of exclusivity,” he said. “The priority is based on first come-first served, and people have known this car was coming for a few years, so sales are always based on those who expressed interest at the start.”

So now Ferrari are using Scarcity to protect the value of their cars by making less off them available and if you want one you need to get on the waiting list early if you want to be rewarded.  But neither of these strategies compares to Ferrari’s $1.7 million LaFerrari (English translation is simply “The Ferrari”).

To be eligible for one of only 499 editions worldwide, prospective buyers must already own at least five Ferraris and agree to sell it back to the factory once they have had enough of the LaFerrari.

An article published this week in Fairfax Media stated that well-known car collectors like transport tycoon Lindsay Fox have had their applications denied for the most expensive car to ever wear the prancing horse badge.

“There are multiple cars coming into Australia and New Zealand .. but we’re not at liberty to be able to talk about who was successful and who wasn’t,” Appleroth said.

“We had 20 interested parties – known collectors and collectors who were not known – and unfortunately some people missed out.”

The crazy thing is the LaFerrari cannot be registered in Australia because it is only being manufactured as a left-hand drive vehicle.  So the lucky collectors will have one of the most exclusive cars in the world yet they will not be able to drive it on the open road.

Implication for You

How can you do something to highlight the exclusivity of your product or service?  You will know you are on the right track when your idea scares you!

Value what you have and keep the value high by only making a limited number available.

 

Thanks to Jamie O for sharing the drive article with me!

 

 

 

The post The Art of Exclusivity appeared first on Social Influence Consulting Group.

Filed Under: Influence, LaFerrari, Scarcity

The Social Influence Consulting Group Blog December 1, 2013

Influence is Content and Context

Influence Context

In an interview I recently conducted with Dr Robert B Cialdini (referred to by some as the “Godfather of Influence”) he made a simple point that due to its simplicity could be easily overlooked.  He said something he found remarkable when he was conducting his systematic field based research, that ultimately led to the discovery of the six universal principles of persuasion, was “there are really two domains that are available to increase the success of an attempt to influence someone in your direction”.  

1.  The content of what you are offering

2. The context or the psychological frame in which the offer or request is placed

Too often we focus on the content alone.  We look at the features of our product or service.  We focus on what we do and create a letter, email, pitch or website based around the content.  Yes the content is important but if you focus just on what you do, making it overwhelmingly detailed and polished, you can lose the target of influence long before you have the chance to get them to say “yes” to your request.

The critical aspect is the context.  It is the psychological frame we have the target of influence considering the content from within.  For example, if you go to see the most marvellous painting but when you arrive it is in a dark corner, housed in an old damaged frame, with larger more commanding pieces surrounding it thereby making it appear small and unimpressive.  The painting will probably fail to live up to your expectations.  However take the same piece of art, properly lit, framed perfectly and in a space that allows for its admiration, then the context in which the painting is viewed changes our perspective of it.  The painting itself is the same; i.e. the content is the same.  It is the context in which it is considered that is different.

Therefore when writing an email or preparing for a meeting, whatever, here are my tips.

Get the content down.  Write it out.  Purge your head of the things you need to say.
Once you have the content out then go back and look at context.  Consider the framing, the phraseology and principles that best apply to presenting your case in its best possible light.

In my upcoming book Influencing Business, Dr Cialdini shares the following example:

“A number of years ago, some of my researchers and I went around to the homes in a suburb in the Phoenix, Arizona area where I’m currently living, asking people if they would be willing to donate to a good charitable cause The United Way.  For half of the homes we approached we asked for a donation in the same way that the typical charity solicitor would.  We described the benefits that will come from supporting the organization, the good work that we did and then asked for a contribution.

For the other half of the homes, we did exactly the same thing and then we added five words. We said “even a penny would help”.

Even a penny would help didn’t change the merits of this organization’s good works and how they went about it. None of that was changed, but we suddenly created a situation that made it difficult for them to say no. Because even a penny would help.

What happened was we increased the percentage of people who gave a contribution from 33% to 55% …by simply changing the psychological frame in which we placed that request.” 

This week, consider the context in which you are presenting your requests and ask yourself, is that best possible way to get the target of influence to consider your request.

Let me know where you have seen content presented in partnership with an ill-fitting context.

 

 

The post Influence is Content and Context appeared first on Social Influence Consulting Group.

Filed Under: General, Influence

The Social Influence Consulting Group Blog November 24, 2013

Persuasive Writing

Do you like receiving bills in the mail?  When you see one does your heart miss a beat fearing the loss the envelope may contain?  Do you enter a period of denial and leave the bills to one side and make a deal with yourself to open them later?

Do you have to send letters to others and suspect that this is their reaction to receiving the letter from you?

What is it about a bill or a formal letter that triggers this type of response?  Is it the window in the envelope?  Your logo? The generic typeface?

It appears that Danish mortgage bank BRF Kredit were sending letters to cash strapped home-owners to help them out of their situation but most were failing to respond.  BRF believed the fear the recipient had of the envelope was contributing to the non-response.

So what did they do?

Persuasive Writing

BRF replaced the standard fear inducing envelope complete with logo and replaced it with a normal plain envelope; one where the recipient’s name and address was handwritten onto it.

By using this approach across 1300 cases BRF state that it has been able to get 9 out of 10 home-owners back on their feet because they are engaging with the bank saving them and the bank between 100 and 150 million Danish kroner (18-27 million USD).

As the article doesn’t articulate whether any split testing was done (i.e. some envelopes sent with handwriting and the logo; handwritten with no logo; typed with no logo; and we know typed with logo resulted with no-response) we don’t know which attribute was more persuasive in having home-owners open the letter and subsequently read the offer of assistance provided by the bank.

While in the case of BRF we don’t know if it was the personalised address we do know that research conducted by Randy Garner in 2005 found that when a post-it note with a hand written request for the recipient to complete a survey was used, the response rate was significantly higher when the post-it note was attached and personalised.

The post-it note draws attention to the request and the personalisation triggers Reciprocity.

Fellow CMCT Brian Ahearn used this tactic to get $700,000 repaid after an accounting error and the UK Government used handwritten notes stating “This message is important” to boost tax compliance that they estimated for every dollar spent on handwriting returned $2000.

Don’t you think it worth a try!

So this week what will you handwrite?  Write the card, the envelope, the post-it note.  Show the effort and reap the rewards.

 

 

 

Sources:

http://politiken.dk/oekonomi/privatoekonomi/ECE1509255/haandskrevne-kuverter-faar-skyldnere-til-at-aabne-brevet/

Garner, R (2005) Post-It® Note Persuasion: A Sticky Influence. Journal of Consumer Psychology, 15(3), 230-237.

Ahearn, B (2012) http://influence-people-brian.blogspot.com.au/2012/01/700000-great-reasons-to-use-yellow.html

Freakonomics: http://freakonomics.com/2013/04/03/the-tax-man-nudgeth-full-transcript/

The post Persuasive Writing appeared first on Social Influence Consulting Group.

Filed Under: Influence, Reciprocity

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